EX-99.1 2 ex99_1.htm EXHIBIT 99.1 PRESS RELEASE, DATED MAY 14, 2008 ex99_1.htm
Investor Contacts: Gerald Tucciarone
Chief Financial Officer
631/434-1600, extension 306                                                                                                

HAUPPAUGE DIGITAL REPORTS FISCAL 2008
SECOND QUARTER AND SIX MONTH RESULTS
________________________________________________________________


 
HAUPPAUGE, NY – May 14, 2008 - Hauppauge Digital, Inc. (NASDAQ: HAUP), a leading developer of digital video TV and data broadcast receiver products for personal computers, today reported financial results for the second fiscal quarter and six month period ended March  31, 2008.
 
SECOND QUARTER RESULTS
 
Net sales were $17.5 million for the second quarter of fiscal 2008 compared to $29.9 million for the previous year’s second quarter, a decrease of approximately 41%.
 
 
The Company  had a net loss of  $1,525,078 for the second fiscal quarter ended March 31, 2008, compared to net income of $1,276,933 for the second fiscal quarter ended March 31,  2007.  Net loss per share for the second fiscal quarter ended March 31, 2008 was $0.15 on a basic and diluted basis, compared to net income per share of $0.13 and $0.12 on a basic and diluted basis, respectively, for the second fiscal quarter ended March 31, 2007.
 
SIX MONTH RESULTS
 
Net sales were $54.6 million for the six months ended March 31, 2008  compared to $59.8 million for the six moths ended March 31, 2007,  a decrease of approximately 9%.
 
 
The Company had net income of $937,911 for the six months ended  March 31, 2008, compared to net income of $3,479,669 for the six months ended March 31,  2007.  Net income  per share for the six months  ended March 31, 2008 was $0.09 on a basic and diluted basis, compared to net income per share of $0.36 and $0.34 on a basic and diluted basis, respectively,  for the six months  ended March 31, 2007.
 
 

 
 
DISCUSSION OF RESULTS
 
“Several programs with personal computer manufacturers were discontinued in the quarter due to a shift in focus to lower cost PCs which do not include TV tuners. The termination of these programs resulted in lower sales to some of our largest customers . In addition, one of our retailers in the U.S., CompUSA, went into liquidation which resulted in lower sales in North America.” said Ken Plotkin,  Hauppauge’s Chief Executive Officer.  “Due to the termination of these programs with computer manufacturers plus the closing of CompUSA, we are reviewing our operations and cost structure but we remain  focused on the introduction and marketing of new products over the next several quarters”.
 
 
ABOUT HAUPPAUGE DIGITAL
 
 
Hauppauge Digital, Inc. is a leading developer of analog and digital TV receiver products for the personal computer market. Through its Hauppauge Computer Works, Inc. and Hauppauge Digital Europe SARL subsidiaries, the Company designs and develops analog and digital TV receivers that allow PC users to watch television on their PC screen in a resizable window and enable the recording of TV shows to a hard disk, digital video editing, video conferencing, receiving of digital TV transmissions, and the display of digital media stored on a computer to a TV set via a home network. The Company is headquartered in Hauppauge, New York, with administrative offices in Luxembourg, Ireland and Singapore and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore, Taiwan and California. The Company’s Internet web site can be found at http://www.hauppauge.com.
 
 
This press release contains forward-looking statements as that term is defined in the federal securities laws.  The events described in forward-looking statements contained in this press release may not occur.   Generally these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of our plans or strategies, projected or anticipated benefits from acquisitions to be made by us, or projections involving anticipated revenues, earnings or other aspects of our operating results.  The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," and "continue," and their opposites and similar expressions are intended to identify forward-looking statements.  We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences (including, but not limited to, those set forth in our public reports filed with the Securities and Exchange Commission including, but not limited to, our Annual Report on Form 10-K for the year ended September 30, 2007, our Form 10-Q for the quarters ended June 30, 2007,  December 31, 2007 and  our Form 10-Q for the three months March  31, 2008 to be filed with the Securities and Exchange Commission) many of which are beyond our control, that may influence the accuracy of the statements and the projections upon which the statements are based.  Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements.  We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
 
[ Financial Table Follows ]
 
 

 

HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

 
   
Three Months ended
March 31,
 
   
2008
(Unaudited)
   
2007
(Unaudited)
 
Net Sales
  $ 17,512,692     $ 29,891,841  
Cost of  Sales
    14,173,271       24,248,250  
Gross Profit
    3,339,421       5,643,591  
                 
Selling, General and Administrative expenses
    3,950,288       3,550,240  
Research & Development  expenses
    978,939       749,827  
Income (loss)  from operations
    (1,589,806 )     1,343,524  
                 
Other income (expense) :
               
Interest income
    10,623       9,347  
Foreign currency
    (4,344 )      (18,245 )
Total other  income  (expense)
    6,279       (8,898 )
Income  (loss) before taxes
    (1,583,527 )     1,334,626  
Tax  provision  (benefit)
    (58,449 )     57,693  
Net income  (loss)
  $ (1,525,078 )   $ 1,276,933  
                 
                 
Net income (loss) per share
               
Basic
  $ (0.15 )   $ 0.13  
Diluted
  $ (0.15 )   $ 0.12  
                 
                 
                 
Weighted average shares-basic
    9,880,866       9,885,419  
Weighted average shares-diluted
    9,880,866       10,557,404  

 
 

 


HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
   
Six Months ended
March 31,
 
   
2008
   
2007
 
   
(Unaudited)
   
(Unaudited)
 
Net Sales
  $ 54,560,153     $ 59,810,974  
Cost of  Sales
    43,079,671       47,349,846  
Gross Profit
    11,480,482       12,461,128  
                 
Selling, General and Administrative expenses
    8,502,856       7,352,463  
Research & Development  expenses
    1,892,696       1,503,271  
Income  from operations
    1,084,930       3,605,394  
                 
Other income (expense) :
               
Interest income
    16,817       21,738  
Foreign currency
    (31,953 )      (6,218 )
Total other  income (expense)
    (15,136 )      15,520  
Income  before income tax expense
    1,069,794       3,620,914  
Income tax  expense
    131,883       141,245  
Net income
  $ 937,911     $ 3,479,669  
                 
                 
Net income per share
               
Basic
  $ 0.09     $ 0.36  
Diluted
  $ 0.09     $ 0.34  
                 
                 
                 
Weighted average shares-basic
    9,918,434       9,781,009  
Weighted average shares-diluted
    10,187,134       10,367,562  

 
 

 

HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 


   
March 31,
   
September 30,
 
   
2008
   
2007
 
   
Unaudited
       
 Assets:
           
             
 Current Assets:
           
     Cash and cash  equivalents
  $ 11,309,504     $ 11,581,657  
     Trade receivables, net of various allowances
    6,792,353       15,038,751  
     Other non trade receivables
    1,686,803       8,629,075  
     Inventories
    15,977,066       13,521,864  
     Deferred tax asset-current
    603,078       603,078  
     Prepaid expenses and other current assets
    1,327,783       802,575  
                Total curent assets
    37,696,587       50,177,000  
                 
     Property, plant and equipment, net
    813,770       745,121  
     Security deposits and other non current assets
    101,993       110,165  
     Deferred tax asset-non current
    887,611       887,611  
   Total assets
  $ 39,499,961     $ 51,919,897  
                 
                 
 Liabilities and  Stockholders’  Equity :
               
                 
 Current Liabilities:
               
    Accounts payable
  $ 7,219,741     $ 20,635,137  
    Accrued expenses- fees
    5,841,550       5,827,356  
    Accrued expenses
    2,030,580       2,374,410  
    Income taxes payable
    67,853       141,913  
  Total current liabilities
    15,159,724       28,978,816  
                 
 Stockholders' Equity
               
    Common stock $.01 par value; 25,000,000 shares authorized
               
     10,773,630 and 10,597,002  issued, respectively
    107,736       105,970  
     Additional paid-in capital
    16,170,605       15,497,703  
     Retained earnings
    11,964,795       11,026,884  
     Accumulated other comprehensive income
    (1,498,562 )     (1,325,971 )
    Treasury  Stock, at cost, 759,579 and 749,579 shares
    (2,404,337 )     (2,363,505 )
             Total stockholders' equity
    24,340,237       22,941,081  
Total liabilities and stockholders’ equity
  $ 39,499,961     $ 51,919,897  
                 
                 
 
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